Is it too late to start saving for retirement at 55? How can I save for my retirement if I am already 55 years old. I want to retire rich and happy when I hit 65. Is this possible? What is the best thing to do to save for my retirement? Please guide me. Thank you.A reader from Concorde California, USA asked this question. A retirement planning “stuff” to talk about. How can a 55 year old guy retire rich and comfortable when he reached 65.
This is possible but the guy need to invest large amount of money. There are many investment tools that can help this guy to retire rich. If this guy invest money when he was at 30, he should now a multi-millionaire. We shouldn’t blame such guy, maybe he has a lot of priorities in his life or maybe he can’t save or he just discovered lately the beauty of “investing” and “saving for retirement”.
Related: How Much Money to Save for My Retirement
Is it Too Late to Start Saving for Retirement at 55
Our Best Advice: Still this guy needs to determine how much money required to invest to earned an earning asset. An earning asset means the asset that is working for him without his effort or presence. That way, investing is the key. This guy needs a financial planner or consultant to help and guide him for his retirement plan based on his financial goals and needs.
Related: How to Set Up a Retirement Plan
Assuming you (my readers) want to retire at age 60.
- At age 30, you will have 30 years to prepare for your retirement.
- At age 40, you will have 20 years to prepare for your retirement.
- At age 45, you will have 15 years to prepare for your retirement.
Assuming this guy has a monthly lifestyle amounting to $1,500. His target should have an earning asset that is making $1,500 even he is not working. How’s that? He should invest in an investment vehicle that earns $1,500 per month. To get that earning asset, he should start investing today until he obtain the amount required that earning $1,500.
Above else, asset allocation is very important. When he reached 65, all his asset should be diversified well. He should have funds in stocks, money market funds, bonds and savings.
Any investing tips you want to add for this 55 year old guy who want to retire rich after 10 years? Kindly share it in the comment box below. Do not forget to share this with your friends. Thank you for reading.